How to Start a Business in Connecticut: A Step-by-Step Guide
Starting a business is simpler than most people think — if you know the right steps.
Connecticut is a strong state for small business, with a well-developed professional services ecosystem, access to capital, and a consumer base with significant purchasing power. Whether you're launching a solo consultancy or building a team-based company, this guide walks you through every step from idea to open doors.
Choose Your Business Structure
The most common structures for new businesses are sole proprietorship, LLC (Limited Liability Company), and corporation (S-Corp or C-Corp). For most small businesses, an LLC is the right starting point — it separates your personal assets from business liabilities without the complexity of a full corporation.
A sole proprietorship requires no formal registration and is the simplest option, but it offers no liability protection — your personal assets are exposed if the business is sued. It works for very low-risk freelance or consulting work, but most business owners should form an LLC.
If you plan to raise outside investment or eventually go public, a Delaware C-Corp is the standard choice — most venture capital firms and angel investors require it. You can incorporate in Delaware even if you operate in Connecticut.
Register Your Business in Connecticut
To form an LLC in Connecticut, file a Certificate of Organization with the Connecticut Secretary of State through the CONCORD online portal (concord-sots.ct.gov). The filing fee is $120. Processing typically takes 3–5 business days; expedited same-day processing is available for an additional fee.
You'll also need to appoint a registered agent — a person or service with a Connecticut address who can receive legal documents on behalf of your business. You can serve as your own registered agent, or use a registered agent service (typically $50–$150/year).
After forming your LLC, create an Operating Agreement — even if you're a single-member LLC. This document outlines how the business is managed, how profits are distributed, and what happens if a member leaves. It's not required by Connecticut law but is essential for protecting your liability shield.
Get Your EIN and Open a Business Bank Account
Apply for an Employer Identification Number (EIN) from the IRS at irs.gov — it's free and takes about 10 minutes online. You need an EIN to open a business bank account, hire employees, and file business taxes, even if you have no employees.
Open a dedicated business checking account immediately — mixing personal and business finances is the single most common mistake new business owners make, and it can pierce your LLC's liability protection. Most local banks and credit unions offer free or low-fee business checking.
Consider a business credit card from day one. It simplifies expense tracking, builds business credit history, and often comes with rewards on common business purchases. Keep it separate from personal spending.
Local Tips
- File your LLC online at concord-sots.ct.gov — it's faster and cheaper than paper filing
- Get your EIN from irs.gov for free — never pay a third party to do this
- Open a business bank account the same week you get your EIN
- Connecticut requires an annual report for LLCs — file by March 31 each year ($80 fee)
- SCORE Connecticut offers free mentoring from experienced business owners — use it
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